16 January 2013

Yangzijiang falls after announcing warrants issue plan

SINGAPORE,
Jan 16 (Reuters) - Shares in Yangzijiang Shipbuilding (Holdings) Ltd
fell 7.7 percent to a one-week low on Wednesday on concerns over
the potential dilution of its stock after it announced plans to issue S$20 million ($16.32 million) worth of warrants. By 0955 SG Hour, Yangzijiang
shares were at S$1.015, with 48.9 million shares traded, 1.2 times its
average daily volume over the last five sessions. Yangzijiang said it
plans to sell 330 million warrants at S$0.0605 a piece, and each will carry
the right to subscribe to one new share at 7.617 yuan ($1.23). "There is some uncertainty over why the company is raising funds. It's not a large amount they are getting and the exercise price
of the warrant is also quite high considering their share price today," said
a local trader. ($1 = 1.2252 Singapore dollars) ($1 = 6.2136 Chinese
yuan)

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